SB223: increasing the minimum gross business income required for filing a business profits tax return.

SB 223-FN - AS AMENDED BY THE SENATE

01/08/2020 2871s

2019 SESSION

19-0907

10/08

SENATE BILL 223-FN

AN ACT increasing the minimum gross business income required for filing a business profits tax return.

SPONSORS: Sen. Dietsch, Dist 9; Sen. Gray, Dist 6; Rep. Pickering, Hills. 3; Rep. Bosman, Hills. 38

COMMITTEE: Ways and Means

ANALYSIS

This bill increases the minimum gross business income required for filing a business profits tax return.

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Explanation: Matter added to current law appears in bold italics.

Matter removed from current law appears [in brackets and struckthrough.]

Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

01/08/2020 2871s 19-0907

10/08

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Nineteen

AN ACT increasing the minimum gross business income required for filing a business profits tax return.

Be it Enacted by the Senate and House of Representatives in General Court convened:

1 Minimum Gross Business Income for Filing Business Profits Tax Return. Amend RSA 77-A:6, I and I-a to read as follows:

I. Every business organization having gross business income in excess of [$50,000] $75,000 as defined by RSA 77-A:1, VI, during the taxable period, shall on or before the fifteenth day of the third month in the case of organizations required to file a United States partnership tax return, and the fifteenth day of the fourth month in the case of all other business organizations, following expiration of its taxable period, make a return to the commissioner. The commissioner of revenue administration shall adopt rules, pursuant to RSA 541-A, relative to the form of such return and the data which it must contain for the correct computation of taxable business profits and gross business income attributable to this state and the tax assessed on it. All returns shall be signed by the taxpayer or by its authorized representative, subject to the pains and penalties of perjury.

I-a. Every business organization realizing a gain or loss on the sale or exchange of an interest in the business organization shall file a return for the taxable period, regardless of whether or not the business organization's gross business income is in excess of [$50,000] $75,000 during the taxable period.

2 Applicability. The provisions of this act shall apply for taxable periods beginning after December 31, 2020.

3 Effective Date. This act shall take effect 60 days after its passage.

LBAO

19-0907

Amended 1/17/20

SB 223-FN- FISCAL NOTE

AS AMENDED BY THE SENATE (AMENDMENT #2019-2871s)

AN ACT increasing the minimum gross business income required for filing a business profits tax return.

FISCAL IMPACT: [ X ] State [ ] County [ ] Local [ ] None

Estimated Increase / (Decrease)

STATE:

FY 2020

FY 2021

FY 2022

FY 2023

Appropriation

$0

$0

$0

$0

Revenue

$0

Indeterminable Decrease

Indeterminable Decrease

Indeterminable Decrease

Expenditures

$0

$0

$0

$0

Funding Source:

[ X ] General [ X ] Education [ ] Highway [ ] Other

METHODOLOGY:

This bill amends the Business Profits Tax (BPT) statute to increase the threshold to file a BPT return from $50,000 to $75,000. The Department of Revenue Administration is not able to determine the fiscal impact of this bill as the Department does not know how many taxpayers, current or new, would have gross business income between $50,001 and $75,000. The Department is able to apply the changes contained in this bill to tax year 2016 information to provide an estimated impact of this bill. Of the 73,179 taxpayers that filed tax year 2016 BPT returns, 4,102 reported gross business income between $50,001 and $75,000. Of the 4,102 taxpayers, 3,774 had no BPT liability with the remaining 328 taxpayers reporting a total liability of $347,489. Therefore, the possible decrease in General Fund and Education Trust Fund revenue would have been $347,489 if this change had been in effect for tax year 2016.

AGENCIES CONTACTED:

Department of Revenue Administration